May 28, 2024

Announcement of the Target Revision of “2025 Sumitomo
Riko Group Mid-Term Management Plan”

Sumitomo Riko Company Limited (Headquarters: Nakamura-ku, Nagoya-shi;President & CEO: Kazushi Shimizu) announces that it has revised the numericaltargets for “Business Profit,” “ROIC,” and “ROE” in the corporate value (financialtargets) of its medium-term management plan “2025 Sumitomo Riko Group
Mid-Term Management Plan(2025P)” which was formulated and announced in May
2023 and ends in FY 2025.
1. Revised corporate value (financial targets) in 2025P
FY 2023

FY 2025（Fiscal year ending March 31, 2026）

ActualInitial Plan

Revised Plan

615.4 billion yen

620 billion yen

620 billion yen

37 billion yen

28 billion yen

32 billion yen

ROIC*1(return on invested capital)

12.0％

8% or more

10% or more

ROE (return on equity held byparent company)

10.3％

8% or more

9% or more

Dividend payout ratio

20.1％

30% or more

30%or more

Consolidated net Sales
Business profits

The above revised plan assumes exchange rates of 145 yen per U.S. dollar,
155 yen per Euro.
*1 Return on Invested Capital (ROIC) = Business profit ÷Invested Assets (TotalAssets - Interest Free Liabilities)

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2. Reason for the revision
Based on the “Summary of Financial Statements for the Year Ended March 31,
2024 [IFRS] (Consolidated)” released on May 9, 2024, and our business forecast for
the year ending March 31, 2025, we have decided to revise 2025P as shown above.
In order to achieve the targets under 2025P, we have been working to further
strengthen our earnings base while continuing to promote structural reforms at ourglobal production bases, which have been implemented to date, under the theme of“Further enhancing profitability and Strengthening the management foundation forsustainable growth.”
We have now revised our numerical targets for “Business Profit,” “ROIC,” and “ROE”
due to productivity improvements resulting from the recovery of automotive
production volume from the Corona pandemic, as well as progress in structuralreforms, cost reduction activities, and other measures at a pace faster than initiallyexpected.
With regard to dividends, our basic policy is to pay continuous and stable dividends
as initially planned, and we aim to achieve a dividend payout ratio of 30% or moreat the end of FY2025.
There is no change in the corporate value (financial targets) or public value(non-financial targets) other than the above and the targets of the “2029 Sumitomo
Riko Group Vision” (2029V) in 2025P from those announced in May 2023.
■Content of the May 2023 announcement
https://www.sumitomoriko.co.jp/english/news/2023/jjs0va000000006g-att/n519
10679-e.pdf
The Sumitomo Riko Group aims to be a “Global Excellent Manufacturing Company”
that is needed around the world by our 100th anniversary in 2029.

Note: The revised corporate value (financial targets) is based on our judgment
based on the information available at this time and is not a guarantee of future
performance. Actual results may differ from the forecast figures due to various
factors in the future.

Contact Information

Sumitomo Riko Company Limitedtel +81-52-571-0259

Public Relations and Investor Relations Department
JP Tower Nagoya 1-1-1, Meieki, Nakamura-ku, Nagoya-shi, Aichi 450-6316, Japane-mail product.info@jp.sumitomoriko.com https://www.sumitomoriko.co.jp/english/

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